The Reuters Tankan index for Japanese manufacturers rose to +13 in June 2026 from +8 in May, marking a second consecutive month of improvement. Robust semiconductor demand underpinned the gains, lifting confidence among chemicals, electronics, and machinery producers. The chemicals sector index jumped to +20 from +6, with firms reporting strong order growth linked to the chip market despite persistent geopolitical tensions.
Sentiment among non-manufacturers also improved, climbing to +32 from +29, supported by firmer confidence in the real estate and construction sectors and a solid pipeline of new projects. Looking ahead, manufacturers expect sentiment to hold steady at +13 in September, while non-manufacturers anticipate a decline in their index to +19, reflecting mounting concerns over geopolitical risks and supply chain strains.
The transport machinery sector, which includes automakers, has turned distinctly cautious. Its outlook index dropped to -13 from +13, highlighting ongoing difficulties in securing materials and continuing disruptions across global supply chains.